FUN WITH WIND MARKET FUND?

There are relatively few ways to invest in wind energy in comparison to other energy companies. Wind is not a commodity. There are few wind energy companies traded on U.S. markets, though there are foreign companies available through European and Asian markets. Some U.S. companies available on the major exchanges like GE Energy and FPL Group have big investments of one kind or another in wind.

First Trust ISE Global Wind Energy Index Fund will be an Exchange Traded Fund (ETF) indexed to the market and likely to rise and fall with the fate and fortune of the wind energy industry generally (or, more specifically, rise – at least for the next quarter century or so). The ticker symbol is Arca: FAN.

The ticker symbol indicates the ETF will be traded on the New York Stock Exchange’s Archipelago Exchange, a securities exchange owned by NYSE Euronext . Arca is the world’s second largest Electronic Communication Network.

Though many in the traditional fossil fuels industries have only recently begun to realize it, the wind industry is reaching maturity. The U.S. Department of Energy recently affirmed the wind industry’s readiness to provide 20% of U.S. electricity by 2030, up from the 1.1% it provides today. (See WIND: YOU AIN’T SEEN NOTHIN’ YET!)

The First Trust ISE Global Wind Energy Index Fund will seek investment results that correspond generally to the price and yield of the ISE Global Wind Energy Index. (symbol: GWE), a weighted equity index of world wind energy industry companies.

Along with facts suggestive of strong value in this ETF, it is important to add “caveat emptor." The ETF is not FDIC insured, not bank guaranteed and could lose value as markets and factors fluctuate. But it could be fun - not to mention a welcome change of pace - to watch an investment fluctuate upwards.

Prospectus available at 1-800-621-1675.

The wind industry expects to grow this much by 2030 and DOE says the plan is feasible. Think it's a good investment? (click to enlarge)

First Trust Advisors Announces the First Trust ISE Global Wind Energy Index Fund; The First Wind Energy ETF
June 16, 2008 (First Trust via Business Wire)

WHO
First Trust Advisors L.P.

WHAT
First Trust ISE Global Wind Energy Index Fund (Arca: FAN ) will be indexed to the ISE Global Wind Energy Index (GWE), a modified market capitalization weighted equity index

By 2030, the nation will be getting 20% of its power from wind. (click to enlarge)

WHEN
- First Trust ISE Global Wind Energy Index Fund will begin trading June 18.
- First Trust Advisors L.P. was established in 1991.

WHERE
- First Trust ISE Global Wind Energy Index Fund will trade on the New York Stock Exchange (NYSE).
- First Trust Advisors L.P. is based in Lisle, Illinois. It operates in the U.S., Canada and Europe.

WHY
- The wind industry added 27% of capacity in 2007.
- A U.S. Department of Energy study recently affirmed the wind industry’s capability to provide 20% of U.S. electricity by 2030, essentially predicting a 20+% growth over the next quarter century.
- The index includes only companies with market capitalizations of at least $100 million.
- ISE Global Wind Energy Index is developed/owned by International Securities Exchange LLC, in consultation with Standard & Poor’s (a McGraw-Hill Companies, Inc. division).
- First Trust Advisors L.P. manages/supervises $34+ billion. It uses an enhanced indexing approach for its ETFs.

Exchange Traded Funds (ETFs) are an increasingly popular way to obtain a balanced portfolio with one investment. (click to enlarge)

QUOTES
Robert Carey, CFA, Chief Investment Officer, First Trust: “First Trust is pleased to introduce an ETF product that focuses entirely on wind energy…We are watching the wind energy industry rapidly mature due to investment from around the globe…Industry experts are predicting continued growth of installed wind generation capacity worldwide for a number of reasons, including concerns about supply security, rising fossil fuel costs, and mitigation efforts related to environmental problems and climate change. First Trust sees the acceleration in the building of global wind generation capacity as a strong signal that wind generation has become an important global growth industry…”